The Time For Efficiency Is Now

small business accounting advice

We’re living in strange times at the moment and we are all adjusting to this new way of living – for now.  Understandably, many of you will be concerned about your finances and what is going to happen in the future. It’s a good idea to use any extra time you may have to plan and make any efficiencies to ensure your money goes further.

This will also make you feel that you are taking some control back.

Hi, I’m Anna Goodwin – Author of five books, Director, Mentor, and Trainer for Anna Goodwin Accountancy.

small business accounting advice

Basically, I take the stress out of finances – both business and personal. From running my own business and helping others to run theirs, I know it’s important to be as efficient as possible.

Of course, the virus has had a huge impact on your daily life. It is also likely you will have been affected financially by this virus in many ways. Largely, it depends on your main source of income.

You may be:

  • A key worker so your salary is not affected
  • A worker who can’t work from home so your salary is not affected
  • A worker who can do your job at home so your salary is not affected
  • An employee who is not working and will receive 80% of your salary for the next 3 months if your employer uses the job retention scheme. (Including a director of a limited company who has a payroll scheme).
  • An employed person who loses their job and has no salary and has to take advantage of universal credit.
  • A self-employed person who can continue to work and therefore your salary will not be affected

Of course within your family there will lots of different combinations of these – it’s important to face your financial situation and make any efficiencies that you can. You may even have already realised some savings by not having to commute into work every day.

Possible efficiencies you can make to your household expenses:

  • Use the 3 month mortgage payment holiday
  • Review your utilities to see if any efficiencies can be made
  • Do you have any subscriptions that you can cancel for now as you are not using them?
  • Plan ahead with your shopping so that you only buy what you need to and none of your produce is lost.
  • Research how to make use of every last bit of food that you buy so that it does not go to waste e.g. make soup out of vegetables which are about to turn, pudding out of dried bread.

Jot down any efficiencies that come to you.

Possible efficiencies you can make to your business expenses:

  • Use the 3 month deferral of VAT
  • Use the deferral of self-assessment re the July payment
  • Review any subscriptions – are there any that you aren’t going to use at the moment and can cancel?
  • Is there any advertising you can cut down on or take it online?
  • Review your utilities to see if any efficiencies can be made

By taking control of your finances it will make it easier to adjust to a reduced salary, if that is the case with you. Even if your salary if not affected, maybe consider efficiencies anyway as you could save some money for a special trip  when all this is over.

So, give some thought now to your costs, both at home and at work.  How can you decrease them?

There will be costs that are naturally a lot lower than they were for the majority of us before the outbreak:

  • Entertaining
  • Motor expenses
  • Travel

But can you think of any more?

You will then be able to enter these revised figures into a budget.

Next week, I will concentrate on spring cleaning your finances.

Do you want to stay in control of your finances? Why not join my online group? I also offer 121 Mentoring and Accountancy services. If you would like more information, get in touch.